Speech by Piero Cipollone ECB board member on field of DLT technology

Speech by Piero Cipollone ECB board member on field of DLT technology

Bank news
A keynote speech that has divided many economist and IT professional in field of DLT technology that ECB promotes, develop, test and support to create a digital asset. Without doubts financial markets are highly complex and sophisticated. That's why the cost in advanced economies are increasing. In the Symposium 7 October 2024 in Frankfurt on the Future of Payments event Piero Cipollone said. „There is one crucial dimension that has often been overlooked, and that is technology. My aim today is not to discuss how to create a capital markets union for traditional assets, but to discuss how to create one for digital assets from the outset. Although technology has undeniably helped facilitate the provision of financial services through electronic bookkeeping, for example, digital technology has so far failed to…
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EU banks warned of the risk of the European leaders’ plan to confiscate Russian assets and income.

EU banks warned of the risk of the European leaders’ plan to confiscate Russian assets and income.

Bank news
The news that spread on social networks and the media raised the issue of an illegal attempt to confiscate and distribute interest rates on frozen Russian assets, which some experts claim would cause a chain reaction of negative bank events on the European market. Since the beginning of the war between Russia and Ukraine, and the freezing of Russian assets in the European Union, some Western banks have lobbied against the EU's proposal to redistribute interest from billions of euros of frozen Russian assets. There is reason to be concerned because this would lead to expensive litigation in which Russia would be the ultimate winner. Despite the fact that the leaders of the European Union agreed to support Ukraine in the war against Russia with support of 3 billion euros…
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Central bank of Brazil cuts interest rates by 50bps

Central bank of Brazil cuts interest rates by 50bps

Bank news
At an event organized by the consulting firm APCE, the director of monetary policy of the Brazilian central bank, Gabriel Galipolo, presented facts according to which possible changes in monetary easing will not be correlated with interest rates at the end of the easing cycle. He stated, "The manner in which the disinflation process unfolds and the rate of interest rate reduction, as well as possible indicators, will not mean a correlation with the terminal rate." Adopting a pace of reduction of 50 basis points in order to take advantage of all the advantages that are obvious and gain time was the goal. This goal is another prediction with the help of which the bank will see how things will unfold in the future. With this move, the central bank…
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Inflation is tamed says Bank for International Settlements

Inflation is tamed says Bank for International Settlements

Bank news
The creator of monetary policy Bank of International Settlement in there quarterly report said that inflation is tamed and under control. There was however reason for „cautious optimism“ because central banks have taken action to prevent inflation strengthens said head of the Monetary and Economic Department of the BIS, Claudio Borio. "At the same time, economic activity has been remarkably resilient and the financial system has held up well." BIS is starting to be optimistic for future inflation stagnation because of progress and effort that central banks have accomplished to the end of last year. Even if there was a significant chance, that this inflation escalate and spread, monetary policy will change and stop it. Claudio Borio said that „day light“, started to narrow between time when markets expect interest…
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Europe central bank reported first loss after almost 20 year.

Europe central bank reported first loss after almost 20 year.

Bank news
Europe central bank reported first loss after almost 20 year. Many have seen some changes in rates who sky jumped in 2023 making loans expensive. All members of EU and non-EU countries who use EURO are concerned about what will happen in future with EURO zone.   This was one necessary step to stop losing money says ECB and announced a rate cut in 2024. The ECB lose last year €1.3 billion because of high inflation who have done enough damage to economy in Europe. All financial risks and losses of ECB need to stop so that economies can start grow again. The growth of Europe economy is slowing down rapidly in 2023 and 2024.  All this caused by high inflation and job losses last year. Many businesses have failed…
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American and Europe banks close more than 55 branches

American and Europe banks close more than 55 branches

Bank news
New year started in hope to see a better day in our financial sector and we are getting news about Bank branches closing across Europa and USA. The plan to close bank branches will be devastating for business and communities. Europa and USA banks started to announce a branches closing this year. Danske Bank in Ireland announcement on Friday that it will close another four branches, but that will not result in job losses. This will happen in June and branches in Carrick Fergus, Saint field, Knock (east Belfast) and Shipquay place will be closed.  Danske bank has closed 59 branches from 2010 in Ireland. Ulster Bank in Ireland announcement to close 10 branches starting from February 20. John O’ Connell FSU general secretary said over 30% of branches network…
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ECB concerned over early signs of bank run

ECB concerned over early signs of bank run

Bank news
The central bank of European Union analyzed data and early warning indicators who have showed that some banks may experience a bank run. ECB has asked some banks to monitor activity on social media and detect early signs of bank run. The financial problem where client rush to bank to withdraw cash and pull deposits at the same time it’s called (bank run). This specific banking crisis already happened in 2023 when Credit Suisse client withdraw more than 100 Billion Swiss francs. This banking crisis appear to be the most persistent. The probability of a bank run is 50% the reason for the increased percentage is the economic situation and the fear of users of banking services. One of the recent events in 2023 was bank run of Silicon Valley…
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ECB concern over Greece non-bank financial institutions (NBFIs)

ECB concern over Greece non-bank financial institutions (NBFIs)

Bank news
Greece passed a new low that allows non-bank financial institution (NBFIs) to lend money to households and businesses. Regarding non-banking financial institutions that somehow increase the concerns of the European Central Bank may be a just cause. The European Central Bank does not supervise these non-banking financial institutions in Greece. Problems like uncontrolled money lending is a concern but the Greece central bank is the main supervisor of those non-bank financial institutions (NBFIs). ECB says: „The growth of the NBFI sector over the last decade globally, including in Europe, is a source of concern. This is because, in general, the sector is opaque, which means that risks that are not within banking supervisors’ line of sight could be developing. These risks could include the build-up of synthetic and financial leverage,…
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Taiwan central banks & (CBDC) feasibility study

Taiwan central banks & (CBDC) feasibility study

Bank news
Taiwan start (CBDC) research in 2020 and today the central bank of Taiwan has completed a feasibility study for central bank digital currency (CBDC). On Dec. 7. Deputy Governor Mei-Lie Shu says in her speech on banking event that she saw the advantages of (CBDCs) and tokenization. „Central bank currency can serve as the operational basis for tokenization.“ Taiwan central bank has tested a pilot project with consumers and five commercial banks. The goal is to approach to further development of (CBDC) with no timeline for a decision says Mei-Lie Shu. Regarding (CBDC) research Fubon bank has join forces with Ripple and Hong Kong Monetary Authorities in a pilot project using Hong Kong’s e-HKD (CBDC). „But the results of CBDC showed that the application of distributed ledger technology (DLT) had…
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Afreximbank’s continental payment system (PAPSS) welcomes 11 African central banks

Afreximbank’s continental payment system (PAPSS) welcomes 11 African central banks

Bank news
Leading Pan-African Payment and Settlement System (PAPSS) has expanded because more banks are willing to join. The significant effort is to reduce expenses with trade in the region. By incorporating 11, more central banks that are African the African Export-Import bank will play significant role in future trading platform for Africa. The main goal of (PAPSS) is transaction in local currency that eliminate the necessity for using other third-party currencies. More the 85% of payments currently pass through European or U.S banking infrastructure and the cost of transaction are more the $5 billion in fees. Africa’s new (PAPSS) system will reduce the costs and help African counties to grove there economy. Central banks of African countries are participants in PAPSS system and they regulate and serve as agents to commercial…
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